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Baru (left) speaking during the press conference at DUN. With him is See. – Stock photo
KUCHING: State Legislative Assembly (DUN) speaker Datuk Amar Mohamad Asfia Awang Nassar rejected two motions from private members during today’s session, one from Batu Lintang See Chee How Assemblyman and the other from Ba Kelalan Assemblyman , Baru Bian.
See’s motion sought for the state government to disclose the full terms of the agreement between Petronas and the state government on the State Sales Tax (SST), where the national oil corporation had agreed to pay RM2 billion owed to the state on SST.
In addition to that, it also sought that the August Chamber review, evaluate, and deliberate on the terms and concessions, and instruct the State Government on its present and future conduct of legal procedures to safeguard Sarawak’s sovereign rights to its land and resources.
See said the agreement for Petronas to pay RM2 billion to settle the sales tax imposed on its petroleum products by 2019, and that the sales tax on future petroleum products will be reduced and phased depending of future negotiations, it would have detrimental and serious financial consequences on the state.
He said this meant that the state’s concession to expressly accept that all prior agreements between the two parties concluded under the Oil Development Act of 1974 remain valid and enforceable, and that Petronas is still recognized for owning and full control over national oil and gas development. In line with the Federal Constitution, the concessions made in contravention of the wishes, demands, decisions and resolutions of this august Chamber and those of the Sarawakians, were unacceptable by the DUN.
Noting DUN Standing Order 89 and Article 24 (1) of the Sarawak State Constitution, Asfia said See’s motion should have been first submitted to the Advisory Committee of the 1963 Malaysian Agreement (MA63), which comprises members of all political parties, including the opposition. .
“Only after these matters are discussed will the advisory committee report to this August House on the course of action it will embark on.
Therefore, this motion must be forwarded to the advisory committee before it is presented to the House.
“Therefore, the motion is rejected,” said Asfia.
See’s motion came after Petronas agreed to pay the state government RM2 billion owed from the 2019 SST.
A joint statement signed by the Assistant Minister in the Department of the Chief Minister (Law, State-Federal Relationship and Project Monitoring) Datuk Sharifah Hasidah Sayeed Aman Ghazali and Petronas President Datuk Ahmad Nizam Salleh on May 8 said that the two sides withdrew their legal claims against each other and In addition, Sarawak had agreed to reduce the TSM rate imposed on the corporation from the current five percent in stages.
“Both parties agreed that this would be the best approach to solve these problems, as well as to create a more stable trading and investment environment.
“The approach would also allow continued development in the national oil and gas industry, particularly in this current volatile market situation,” the statement said.
Meanwhile, Baru’s motion called for DUN to amend the Supplemental Supply Bill (2020), 2020 to include authorization for the allocation of RM2.25 billion from the Consolidated Fund for scheduled and specific service expenses not provided or not fully provided in the Supply Ordinance (2020), 2019 before being presented.
Asfia said the motion violated Standing Order 67 (4) and 67 (7), where the Supplemental Supplies Bill can be presented and read without amendment or debate.
“In accordance with Permanent Order 67 (a), when the Supplementary Supply Bill has been reported in the Dewan, the minister will make a motion for its third reading. Said motion shall not require a second and shall be decided without amendment or debate.
“Based on the provisions, the motion is dismissed,” he said.
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